Freetraders’ most popular buys this week 🗓

Is there a complete list of all the stocks and shares currently available on freetrade anywhere?

Freetrade’s stock universe spreadsheet might be what you are looking for.

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https://twitter.com/freetrade/status/1157315548876873729?s=21

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Beyond meat :hear_no_evil::hear_no_evil::hear_no_evil:
The 3m shares from the offering announced at earnings begin to trade on Monday I beleive. Would be tempting for those who acquired them at 160 to flip them if the price remains at this level and lock in an instant profit.

Also, the circumstances around shorting are a big factor in the price movements of Beyond Meat shares. The demand to short shares is sky high, evidenced by the interest rate demanded by those who lend out the shares to shorters- the interest rate is far into triple digits.

When 3million extra shares land on Monday, it wouldn’t be unreasonable to expect the interest rate to short to fall as supply of shares eligible to borrow suddenly increases. This makes shorting the shares more attractive and could attract more short positions to be opened.

If a bunch of short positions are opened at once, the price can be expected to fall as to open a short the borrowed shares are instantly sold in the hope of buying them back later at a cheaper date.

It’s quite paradoxical, but as the price of beyond meat increases above anything warranted by the potential of the business, it becomes more of a ‘no brainer’ short, so demand to borrow shares to short (sell now, buy later at lower price, keep the difference in price and return shares to lender along with agreed interest) increases, which pushes up the interest rate that lenders of shares can charge. People who shorted the shares at a much lower price when the short wasnt as attractive and hence were able to pay more reasonable interest rates, find that the interest rate they must pay to keep their short open also rises to almost match the current interest rate on new shorts, this I beleive is because the lender can recall his lent stock at any time, so he/she would just recall and relend at current interest rate if the shorter doesnt agree to match it.

The person who shorted at $100 now realizes they are in trouble, as they didnt anticipate either price or interest rate on the short increasing to such a degree. The price increase means they are sitting at a loss, potentially amplified by margin, and the interest rate increase means that the timeframe for the short to pay off is much compressed. A 300% interest rate means you lose money even if share price declines by 90% within 5 months.

To close the short position one has to buy back the stock to be able to return it to its owner, the buying pushes share price up to even more ridiculous levels, which attracts more short sellers and it continues. This whole situation is called a short squeeze.

I think most people recognize beyond meat to be overvalued on fundamental basis, the logic of short selling is that when the lockup period which bars insiders from selling for 180 days expires on october 29th, the price will fall to a level that more closely correlates with the fundamentals of the business as most of the run up in the first few days after IPO was due to low free float or only small percentage of the company’s shares available to buy versus many people wanting exposure to the revolution in food.

I have a small short position on beyond meat in anticipation of a drop when the new shares from the offering hit, but I think I will close next week. I dont want to be caught in a crazy short squeeze sending the pirce up to 300-400 between now and October 29th. I dont usually care for any technical analysis but in instances like this it helps me understand what’s happening. I hope people can recognize that it’s at least a strong possibility that the dynamics around shorting and a low free float are responsible for much of the increase in share price and that if this is the case, this should reverse no later than mid november. It’s slightly concerning to see it on the most bought list. I think robinhood has seen a similar increase in holders too as price has risen.

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:arrow_up: :arrow_down::new:

https://twitter.com/freetrade/status/1159861155164278784?s=21

For sure, across the board, more defence:

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https://twitter.com/freetrade/status/1162369927413714945?s=21

Had my Sirius buy rejected :man_shrugging:t2:

I had my Diageo purchase rejected also :unamused:

Sirius also rejected

Interesting to see the interest in minerals increasing as the possibility of a recession grows.

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It’s just because of the low price.

It’d be more interesting if FT did two lists, most share purchases (like currently) and most popular by shares*value

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:top: :keycap_ten:
https://twitter.com/freetrade/status/1164896889243865089?s=21

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I wasn’t the only one to invest in Greencoat UK this week then…

… certainly not the only one with green fingers :earth_africa:

https://twitter.com/freetrade/status/1167428991608860674?s=21

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Been watching it for a while but I think it was the right time to put some money where my head was at. Let’s hope the only way forward is green.

Al-reit-y then… :100:
https://twitter.com/freetrade/status/1169978549878624257?s=21

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By end of day Friday 20th Sep 2019: :arrow_down:, ↔ or :heavy_multiplication_x:?:

  • SXX will lose top spot
  • SXX will maintain top spot
  • SXX will drop out of top 10 altogether

0 voters

Last week:
https://twitter.com/freetrade/status/1172514771381497861?s=21

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I have voted cynically…I hope it will not maintain!!

It’s interesting to see BT back in top 10. I’d by interested to know why people are buying it.